Asian stocks were mixed with Japanese benchmarks slightly higher but many other regional stocks fell amid profit warnings and US jobless claims and housing data. The Nikkei and the Topix were both slightly higher but the MSCI Asia Pacific Index was 0.1% lower. Hong Kong and Korean markets were both closed for a holiday. (Bloomberg)
“George Osborne’s attempt to slash £11.5bn off public spending in election year has run into cabinet trouble, after ministers identified only £2.5bn in cuts to their budgets. Some ministers failed to provide Mr Osborne with the list of 10 per cent in proposed departmental cuts he ordered before last month’s deadline. One said the chancellor was “asking too much”.” (Financial Times)
Singapore Airlines shares slump on loss: Shares fell as much as 4.4%, the most in more than 1 1/2 years, in Singapore trading after lower passenger and cargo fares pushed the company into a wider fourth-quarter operating loss. (Bloomberg)
Dell earnings miss: The third-largest PC maker by shipments on Thursday reported $14.1bn in first-quarter revenues, ahead of analyst expectations of $13.5bn, but down from $14.4bn a year ago. Net income, excluding extraordinary items, was $372m, or 21 cents per share, well below Wall Street’s estimates of 34 cents, and down 51 per cent on $761m, or 43 cents per share, recorded the same quarter a year ago. (Financial Times)
Europe bank stress tests delayed, but will be tougher. The next round of stress tests will be delayed until next year, after the Single Supervisory Mechanism is set up. The EBA says the tests will include an “asset quality review” that will look more closely at risk-weighting and forebearance. (FT Alphaville)(Financial Times)
Bolland’s M&S bonus at risk again: The retailer is expected to announce a fall in underlying pre-tax profit from £706m to about £665m in the year to March 31, when it reports annual results next week. Consensus expectations have come down from about £710m at the start of the financial year. The performance could its toll on chief executive Marc Bolland’s bonus for the third year running. (Financial Times)The BoJ is expected to stand pat on monetary policy at its monthly policy meeting next week, despite jitters over the recent jump in bond yields. (Reuters)Bank of England has queried IMF calculations used to estimate potential losses from easing. Relations between the IMF and the UK have soured since the fund suggested last month that chancellor George Osborne should show more flexibility in deficit reduction. Ahead of a final IMF recommendation on the UK economy due next week, the BoE yesterday objected to calculations showing monetary easing losses could reach 6% of British GDP. (Financial Times)
Official expects surge in BP Gulf claims: The Louisiana attorney appointed to oversee BP’s settlement with the many individuals and firms who say they were harmed by the spill and its aftermath says similar cases usually see a late surge in claims filing. The deadline is in April 2014. (Reuters)
COMMENT AND CURIOS:
Gillian Tett: No-one should feel complacent in this phony QE peace. (Financial Times)
- Bill Gates is the world’s richest man now. (Bloomberg)
- Gold’s allure is fading as ETF sales outweigh physical purchases. (Wall Street Journal)
- And gold bears are happy! (Bloomberg)
- Is Japan’s growth built to last? (Wall Street Journal)
OVERNIGHT MARKETS: MIXED
Asian markets
Nikkei 225 up +53.61 (+0.36%) at 15,091
Topix up +6.96 (+0.56%) at 1,252
US markets
S&P 500 down -8.31 (-0.50%) at 1,650
DJIA down -42.47 (-0.28%) at 15,233
Nasdaq down -6.38 (-0.18%) at 3,465
European markets
Eurofirst 300 down -0.21 (-0.02%) at 1,245
FTSE100 down -5.75 (-0.09%) at 6,688
CAC 40 down -3.16 (-0.08%) at 3,979
Dax up +7.45 (+0.09%) at 8,370
Currencies
€/$ 1.29 (1.29)
$/¥ 102.30 (102.21)
£/$ 1.52 (1.53)
Commodities ($)
Brent Crude (ICE) down -0.26 at 103.52
Light Crude (Nymex) down -0.21 at 94.95
100 Oz Gold (Comex) down -6.40 at 1,381
Copper (Comex) down -0.70 at 328.50
10-year government bond yields (%)
US 1.88%
UK 1.87%
Germany 1.33%
CDS (closing levels)
Markit iTraxx SovX Western Europe -0.27bps at 89.12bp
Markit iTraxx Europe -0.4bps at 93.79bp
Markit iTraxx Xover +2.66bps at 388.39bp
Markit CDX IG -0.09bps at 71.54bp
Sources: FT, Bloomberg, Markit